Lloyds Bank is setting aside an extra £1 billion for PPI claims

Lloyds Bank is setting aside an extra £1 billion to cover the cost of outstanding claims for redress of mis-sold payment protection insurance (PPI).

The lender, which is 9% state-owned, reported pre-tax quarterly profit of £811 million, down from £958 million in the same three month period last year.

The bank said cost savings had been outweighed by lower income.

The group said “marginally lower income and increases in the impairment charge and operating lease depreciation partially offset by lower operating costs.”

Antonio Horta-Osorio, Lloyds CEO, warned that “the outlook for the UK economy remains uncertain,” in the bank’s third quarter results statement.

“However the strength of the recovery in recent years means the UK is well positioned,” he added.

More to follow.

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